Microsoft & Meta Stocks is strong because the expense from AI News ad

Giants in the technology industry first report on income in 2025, so that there is a lot of expectation. Investors sought to hear how hypermers will react to Deepseek, which shocked the markets. Many large technological and semiconductor names are widely sold after the report that DeedSeek has developed its R1 model for $ 6 million.

This doubts the need to spend billions on the development of artificial intelligence infrastructure, which leads to assumptions that hypermers can significantly reduce certain investments in AI in the future. However, according to Microsoft NASDAQ: MSFT and meta -platforms NASDAQ: metThe investment train will continue to puff, at least at the moment.

Below I will break important news regarding investment in the field of artificial intelligence, revealed by these magnificent seven promotions. I will also talk in detail about the comments from their highest guidance, explaining what influence they see Deepseek. I finish, sharing what the events for these two hypercalists ultimately mean.

Microsoft: An investment plan of $ 80 billion has not moved

Microsoft Today

$ 415.06 +0.07 (+0.02%)

As of 31.01.2025 21:00

52-week range

$ 385.58

▼

$ 468.35

Dividend yield

0.80%

P/e ratio.

33.42

Value is valuable

$ 510.96

Microsoft said in early January that she was seeking to invest $ 80 billion in 2025 in the financial year in further AI. In particular, investments hope to “create data processing centers for AI support for teaching AI models and the deployment of AI and cloud applications around the world.”

Thanks to the results of Fiscal Q2 2025, released on January 30, the financial year is already halfway to Microsoft. To date, the company spent $ 43 billion on capital costs (Capex), most of which probably went to AI initiatives. In the first quarter, expenses for $ 20 billion, while in the 2nd quarter there was 22.6 billion dollars, which amounted to 13%. The company is still a lot to spend a year. This is 60% more than 50 billion dollars in capital in the 2024 fourth year.

The chief financial director of Microsoft indicated that the company can actually surpass its purpose of expenses throughout the year. She expects the CapeX expenses in the 3rd and 4th Q4 will remain at a similar level with Q2. Considering that the second quarter saw on capital 22.6 billion dollars. The USA, the total total amount of the company will be $ 87 billion.

When it comes to Deepseek, Microsoft seems to cover its innovations, and not repel. The company added the DiePseek R1 model to its Azure AI foundry plant, where customers can use it to create and develop applications using more than 1800 models. Microsoft explained that as the prices of AI fall, more AI applications will be written. This means a greater demand for Microsoft Azure infrastructure for the design and launch of these applications.

In addition, if AI models require lower computing power, they can work locally on devices without relying on data processing centers. Currently, Microsoft is developing opportunities for its Copilot+ PCS for launching Deepseek R1 locally. This strengthens the Microsoft proposal, allowing him to bring a higher income over time.

Meta: trying to study on the achievements of DeepSeek

Meta platforms today

$ 689.18 +2,18 (+0.32%)

As of 31.01.2025 21:00

52-week range

$ 387.10

▼

$ 710.79

Dividend yield

0.29%

P/e ratio.

28.81

Value is valuable

$ 706.76

Just a few days before the shock, Deepseek Meta said she plans to spend from 60 to 65 billion dollars on Capex. He also wants to raise his AI staff. The company confirmed this expected rate of investment in connection with a call of income.

The remarkable difference between Meta and Microsoft is that the recent META income has been throughout 2024. So, we still do not have an understanding of how their expenses are formed in reality in 2025. Nevertheless, the company said that it plans to invest hundreds of billions in the infrastructure of AI in the long term.

From the point of view of DeepSeek, the chief executive director Mark Zuckerberg clearly mentioned that the DeepSeek model is a competitor to Meta Llama. He added that in the DeepSeek model there are achievements that META will strive to place in the LLAMA model. He mentioned that the adoption of achievements from competitors is not unique to Deepseek; This is how the technological industry works.

He further said that it is still too early to know that Deepseek would mean for the company’s trajectory for the AI ​​infrastructure and capitalization in the future. The company still believes that mass investments in the data center will pay off. Infrastructure will be necessary for servicing billions of users with AI capabilities.

The last thoughts

In general, this is largely, as usual, when it comes to AI travels for these companies. Evolution and turn occur, but the changes in the Earth have not been carried out. As before Deepseek, they will need to achieve more progress in a demonstration of the return of investment for their artificial intelligence projects. The picture of which companies will become the best winners of AI remains blurry, if not more.

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